Anino Games, Inc.

January 29, 2010 BIR RULING [DA-(IL-001) 018-10] EO 226; DA-048-97; DA-456-2007; DA-630-2006; DA-048-97; DA-011-2007; DA(II-018)356-2009; DA-578-2006; DA-586-2007 Anino Games, Inc. 14th Floor, Vernida IV Building 128 Leviste St., Salcedo Village Makati City Attention: Ms. Jane delos Santos HR Officer Gentlemen : This refers to your letter dated May 28, 2009 requesting for exemption from income tax since Anino Games, Inc. was granted an Income Tax Holiday (ITH) by the Board of Investments (BOI) under Executive Order (EO) No. 226 otherwise known as the Omnibus Investments Code of 1987, for a period of four (4) years from March 2009 or actual start of commercial operations, whichever is earlier. From the documents submitted, it appears that Anino Games, Inc. is registered with the BOI as a New ICT Export Service Firm in the Field of Software Development on a Non-Pioneer status with Certificate of Registration No. 2009-027 dated March 5, 2009; that it is also registered with the Securities and Exchange Commission with Company Registration No. CS200804863 dated April 2, 2008; and that its primary purpose is to develop world class and innovative games that promote the Filipino talent and creativity in the global game development industry. In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended, implementing Section 57 (B) of the Tax Code of 1997, the withholding tax prescribed in the said Regulations shall not apply to income payments to persons enjoying exemption from the income tax provided by Republic Act No. 7916 and the Omnibus Investments Code of 1987. (BIR Ruling No. DA-630-2006 dated October 23, 2006) cTACIa Accordingly, since Anino Games, Inc. is a BOI-registered enterprise, enjoying exemption from payment of income taxes pursuant to the provisions of Section 39 (a) (1) of the Omnibus Investments Code of 1987 for a period of 4 years, this Office is of the opinion, as it hereby holds, that it is exempt from the payment of the creditable withholding tax imposed under Revenue Regulations No. 2-98, as amended, on income payments received by it during the aforementioned period with respect to its registered activity, subject however to the condition that both the BOI General and Specific Terms and Conditions for the grant of ITH are met during the said period. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) GREGORIO V. CABANTAC Deputy Commissioner Legal and Inspection Group